Martin Lewis explains what pensioners should be doing with savings ‘as a bare minimum’

5 mins read


Responding to a question from a viewer, Money Saving Expert founder Martin Lewis said doing nothing with savings right now is “a financial sin”. He explained how the 75-year-old pensioner could get the most out of her money.

Pat asked Martin: “What shall I do with the money I have sitting in my bank?

“I’m 75 I have two holidays planned for this year – after receiving a £160,000 sum of money I gave my children and grandchildren £105,000 each and had some decorating done.

“The rest of the money sits in my bank account not earning any interest – what should I do?”

In response, Martin said: “Well classic rule – first of all get rid of all your debt – if you’ve got any debts get rid of your debts.”

READ MORE: Coventry Building Society launches savings accounts paying 4.85%

He continued: “If you could look at investing any of it you would need to go to an Independent Financial Advisor to see what’s right as I don’t know the rest of your financial circumstances.

“But as a bare minimum get it into one of the top paying savings accounts asap and if you’re not planning to use it then go for a one or two year fixed.

“They’re paying over four percent and that’s a lot more interest – you’re talking over £6,000 a year interest on the money that you’ve got.

Even if you don’t do that, get it somewhere with easy access paying 2.75 percent and then you can take the money out whenever you need. But leaving it sitting in your bank earning nothing is frankly a financial sin.”

READ MORE: Aldermore offers 4.60% interest despite ongoing economic uncertainty

Coventry Building Society has upped the interest rates on its savings accounts and is now paying 4.85 percent interest on savings of £250,000. 

Its fixed bonds offers some of the best rates on the market following the Bank of England’s latest base rate increase in September.

Matthew Carter, head of savings at Coventry Building Society, said: “We’re enhancing our product range by launching highly competitive savings accounts to give savers even more choice.

“Our new range of Fixed Bonds offer some of the best rates of interest out there on the market and are ideal for those looking for a good return on their savings over the short, medium or longer term.”

Barclays customers can get 5.12 percent interest on their savings and access their money when they need it but this interest rate drops after £5,000. 

Someone who saved £1,000 into the account would see the balance grow to £1,051.16 after 12 months.

If a saver invested £5,000 in their Rainy Day Saver, the amount would grow to £5,250.17 after a year.

Customers get more rewards if they have additional accounts or services with the bank.

This Morning airs weekdays from 10am on ITV.

Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip.



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